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How does a car loan work?

How does a car loan work?

How does a car loan work exactly? And what do you need for it? You will undoubtedly have a lot of questions when you want a loan for a new or used car. In this blog we will go into the most frequently asked questions.

What is a car loan?

What is a car loan?

We shouldn’t worry about this: a car loan is a form of credit to finance your purchase of a new or second-hand car. You can purchase that car from an official dealer, but also from a private individual.

How does a car loan work?

How does a car loan work?

In principle it looks like an ordinary personal loan. For example, you borrow from the bank an agreed amount that you must repay monthly at a certain interest. But there are still some differences between a regular personal loan and a car loan:

  1. It is possible that the purchased car serves as collateral for the personal loan. Do you sell the car during the term of the loan? Then you still have to pay the remaining amount.

  2. When determining the term of the loan, the bank often takes into account the expected economic life of the car.

What are the differences between borrowing for a second-hand car and a new car?

What are the differences between borrowing for a second-hand car and a new car?

In principle, this is the same loan. Perhaps the only difference is the cost of the credit on an annual basis. This cost is usually lower for new cars than for a second-hand car.

What do you need to take out a car loan?

What do you need to take out a car loan?

If you plan to take out a car loan, you usually need to provide the following documents:

  • A quotation or order form with all information about the desired car. Just think of the precise type and year of construction.

  • Your identity card

  • Proof of housing

  • An overview of your income and employment

Find a car loan together

Find a car loan together with Krediet @ dvies

With us you will undoubtedly find the best car loan. Because we work as a broker with the most current banks, we have an overview of the car loans that best suit your specific situation.

Let’s sit together for a person-to-person conversation. Our employees are happy to talk about your current financial situation, your expectations and the opportunities that present themselves.

Frequently Asked Questions about Credit Cards

Frequently Asked Questions about Credit Cards

The basic thing about credit cards is that every transaction you make with the card increases on your debt. You simply trade on credit. Then you will receive an invoice on your total debt. Usually once a month. You can also choose to pay off your debt over a number of months at a predetermined interest rate.

Your credit card also has a credit limit. This limit is determined partly by the credit limit you have applied for yourself and partly by the credit limit that the card company believes your finances can handle. The higher your salary, the more credit you can usually get. Ordinary credit amounts are USD 10,000 – USD 100,000 a month.

 

Can I apply for a Credit Card without UC?

Credit Card without UC?

There is only one straight answer to that question: no, you cannot apply for a credit card without a credit report at UC. For the simple reason that all financial companies and banks that offer credit cards use the Information Center when making their credit assessment.

 

Can I get a credit card even though I have payment notes?

Can I get a credit card even though I have payment notes?

No, if you have one or more payment notes, you cannot get a credit card. In this case, payment notes are seen as engraved and a sign that the individual in question cannot handle credit. However, there are private loans and quick loans that can be obtained even though you have payment notes.

In most cases, you will not be able to sign up for a new credit card if you have payment notes. But to say that it is impossible is not true.

There are exceptions, but unfortunately they are very rare. The best chance you have is to make personal contact with the bank or card issuer and argue your case.

 

What does a mobile credit card mean?

credit card mean?

A credit card in your mobile phone works in the same way as a credit card. But instead of a physical credit card, you use an app on your mobile. The usual name for this service is “credit account”. In practical terms, this means that you transfer money from your credit account to your regular bank account when needed. You can then pay interest on the credit amount you transferred.

Mobile – your credit card in the future

Online merchandise sales are constantly increasing, which constantly places new demands on user-friendliness and security.

E-commerce on mobile devices has doubled over the past nine months, and many believe that mobile solutions for all types of transactions, so-called digital wallets, will come soon.

 

What does additional insurance mean in the credit card?

credit card?

The usual extra insurance is so-called “supplementary travel insurance”, which is activated automatically, provided you pay a certain part of the trip with your credit card.

Insurance on your card

Your card is much more than just a means of payment. If you pay for the trip or the item with the card, you often include insurance if something goes wrong.

The proportion is usually 50-75%. In other words: if your trip costs USD 20,000 and you pay the full amount with your credit card, then the supplementary travel insurance is activated.

Refinance Credit Card: Save thousands on refinancing credit card debt

Refinance Credit Card: Save thousands on refinancing credit card debt

It will usually pay off to refinance credit card debt with high effective interest rates, especially if you have difficulty paying more than the minimum amount on your credit card each month.

Here’s how you can refinance your credit card debt online and get a better economy, with lower interest rates and monthly costs.

 

Benefits of refinancing

Benefits of refinancing

The main advantage is that you usually get a lower interest rate you have to pay. While a credit card is often 20-30%, a refinancing loan can often halve interest rates. In addition to this, you will also:

  • Collect debt and get a better overview.
  • Get a better customized repayment plan.
  • Lower monthly expenses

 

What does it cost to refinance your credit card debt?

What does it cost to refinance your credit card debt?

Interest-bearing credit card debt is an expensive debt to have. Often, the interest rate can rise to 20-30% and therefore it will usually always pay off to refinance the credit debt. What the interest rate will be on your new refinancing loan will depend on several factors, including:

  • Your disposable income.
  • Your credit score.
  • The amount of debt and risk.

Services like the financial tips have made it easier to compare than ever before, here you receive a non-binding offer from several different banks so you can choose the best solution, for free.

 

Refinance credit card debt with debt collection or payment note

Refinance credit card debt with debt collection or payment note

Even with debt collection or payment notes, there are still opportunities to refinance your credit card with a new loan. This loan is called a restart loan and is provided by the Norwegian bank Straightsave Bank.

This refinancing loan is available to those who own a home or property that can be provided as collateral.

  • Refinances credit card debt with payment note and debt collection.
  • Collects mortgages, debt collection and other loans into one new loan.

The amount you can borrow depends on your finances and the value of your home.

  • A maximum of 85% of the value of the property (including any joint debt) If you can provide additional security, the bank can assess whether it is possible to pledge this.
  • Maximum 5 times income.
  • eTax or valuation from a real estate agent.
  • Complete debt overview of all creditors with name, account number and amount.
  • 3 latest pay slips and tax notice from you and any co-applicant, you download this from altinn.no.

Effective interest rate 7.25%, loan of 2 million over 25 years, cost USD 2,466,934, totaling USD 4,466,934

 

Get a fresh financial start

financial loans

Credit card debt can be an expensive and heavy one to bear. By getting rid of your credit debt you can get a better personal finance and get a fresh financial start.

The article on how to get rid of credit card debt lists many tips on how to go about cleaning up your finances. In addition to refinancing credit card debt, several other important measures should also be taken, such as:

  • Review purchases and consumption habits.
  • Begin with a budget.
  • Make a repayment plan, preferably via the snowball method.

 

Credit card debt refinancing

Credit card debt refinancing

With credit card debt refinancing, you can end up saving many thousands of dollars a year and paying down debt and loans faster. Therefore, please use services such as:

  • Sourcelend Finance or Yeslend Finance if you do not want to use housing or property as collateral
  • Or the restart loan from Straightsave Bank if you have debt collection or payment remarks before.

Refinancing your credit card is something many Norwegians choose to do. Collecting card debt into a new loan with lower interest rates saves the vast majority of money a year.

Loan: what is it and why is it beneficial?

Loan: what is it and why is it beneficial?

You may have already heard of a loan refinancing. That is a handy way to get a better interest rate than that of your current mortgage loan. You can read more about the pros and cons in this blog.

What is a mortgage transfer?

What is a mortgage transfer?

The interest rates can fluctuate considerably during the term of your mortgage. For example, it is quite possible that the current interest rates are lower than the interest rate of your mortgage loan. Certainly if your mortgage loan is ‘old’ for a few years.

That is why today it may pay to switch to another lender. That process has different names. This is generally referred to as refinancing, refinancing or revising a loan.

What are the benefits of refinancing a mortgage?

What are the benefits of refinancing a mortgage?

The main reason for refinancing your loan is of course to obtain a lower interest rate. This way you spend less of your valuable money on interest at the end of the ride . But it doesn’t stop there.

You can also extend the duration of your loan, so that your monthly installment decreases. So you get more financial breathing room every month. Moreover, you also have the option of combining the various loans that you have in place into a single loan.

Are there any disadvantages?

Are there any disadvantages?

There are various costs involved in rescheduling a loan. Consider, for example, the reinvestment payment or the ‘fine’ that you have to pay for breaking the original loan. You also have to pay the costs for canceling the old loan and establishing the new mortgage.

When does it pay to refinance a loan?

When does it pay to refinance a loan?

In fact, there is only one rule when transferring a mortgage: see that the interest you save outweighs the costs that you will meet. The difference between the current and the new loan must therefore be considerable. Only then does it pay to refinance a loan.

Find a better interest rate together

Find a better interest rate together

Do you want to look for a better interest rate than that of your current mortgage loan? We work together with the most current banks. That is why we have an overview of all loans that best suit your specific situation.

In a conversation from person to person we would like to discuss your financial situation, your current mortgage loan and the possibilities that present themselves. Of course, that conversation is completely free and without obligation.

Loan certificate for car loan and motor loan – Search loan certificate online

Loan certificate for car loan and motor loan – Search loan certificate online

If you are looking to buy a car, motorhome, motorcycle or anything else with an engine but are unsure what type of car or motorcycle you want to buy, a loan certificate or loan commitment can be helpful to know what you can afford to buy.

A loan certificate or loan commitment is a pre-approved loan where you are told in advance how much you can get in loans for a car, motorcycle or other vehicle.

 

What you can afford vs what you should use

car loans

A loan certificate tells you in advance what the bank thinks is a maximum loan amount that you can spend on your car purchase.

This does not mean that it will be a smart idea to maximize the loan in order to buy a car, but the loan certificate is useful in that it puts some sort of “ceiling” on what the bank thinks you can afford to buy.

 

Advantages of car financing in advance

car financing in advance

Knowing in advance what kind of car, motorhome, motorcycle or vehicle you can afford to buy has its benefits.

  • Saves time

You don’t have to start the application process after finding the car or vehicle you want to buy. You can also “hit” if you come across a bargain online or at a retailer.

  • Focus on those you can afford

The loan commitment gives you a clue as to what the bank thinks is a maximum loan amount for the purchase of a car or vehicle.

By knowing in advance how much you can borrow, you can focus on the price group you have financing and loan commitments on. You can sort away those that are too expensive.

  • You know your interest rate

By applying for a car loan you know in advance what kind of interest you will receive. You no longer have to accept the financing that the dealer offers, unless they can offer better conditions of course.

By knowing what kind of interest rate you have, you also know if the interest rate a professional car dealership offers will be a good deal.

 

Keep down payment time low

Keep down payment time low

Most often it will not be the interest rate, but the repayment period which indicates whether a loan is expensive or cheap. Loans with short repayment periods have higher monthly installments, and it is wise to save money on interest.

The faster you can repay a loan, the more you will save.

You can of course put a longer maturity on the loan to get a low minimum amount to pay each month. Some people choose a lower monthly amount and longer maturity, rather than pay down extra on the loan.

 

Equity on car loans

Equity through car loans will mean that you always have a little to go on if you are going to sell the car before the loan is repaid. If you fully finance the car purchase you may find yourself in a situation where the loss of value of the car is higher than the repayment of the car loan. Then you often have to take out an unsecured loan to cover the deposit and get rid of the car.

Equity through car loans or pre-financing will also give you the best interest rate. At WillSave Bank you can get interest from 3.45% at 35% equity, against 5.85% at 100% financing.

Credit information – what is it and how does it affect me?

Credit information – what is it and how does it affect me?

Sometimes it can be difficult to keep up with all high-profile banking terms. When is a credit report made? Can anyone do such a thing and how does it affect me as a private person if I want to take out a loan, subscribe or enter into credit agreements? What does it mean that lenders dislike too many credit reports in a short period of time? In this article we will guide you to everything you need to know about credit information.

 

What is Credit Information?

What is Credit Information?

The purpose of a credit report is to map the finances of the person applying for a loan – simply explained, it can be said that it is a resume for your personal finances.

It is ordered by the lender but is performed by one of the credit information companies, where the Goodnote Credit and Servewell Credit Services are some of the largest players.

The lender obviously wants to minimize the risk of loan losses – that is, they do not get back the money they lent. In order to be able to make such a decision, credit information is an important part of the overall assessment.

If the applicant has a fixed income and previously handled his payments, it is safer for the lender to lend money to that person than to a person who has payment notes or no fixed income.

 

Different types of credit information

For private individuals, there are two different types of information – micro information and personal information. Just as the name implies, a micro information is not as comprehensive as a personal information.

 

When do you make a credit report?

Different types of credit information

Many people associate credit reporting primarily with different types of credit loans, but there are a lot of other occasions when a credit report may become relevant.

An information can also be made in conjunction with signing a subscription, obtaining a credit card or signing a lease. The company that orders a credit report on you has an obligation to inform that they will make a statement on you, so that you as a consumer can choose to approve it or not. If you choose to decline the credit information, it may mean that you are not granted the credit card or cannot unsubscribe.

 

If the credit report has no legitimate reason

Anyone has no right to make a credit report on you without having a so-called legitimate reason. A legitimate reason is if someone should enter into a credit agreement with you or have a reason to make a risk assessment on you. For example, a risk assessment may be relevant if you are to gain a higher position at work or enter a service that involves financial responsibility.

 

Can you do a credit report on yourself?

credit report on yourself?

Maybe you wonder about your own credit rating after reading this far? In fact, you as a private person can make a credit report on yourself if you are curious. Through my Unsecured credit you can find out your score for 29 SEK. The results are ordered via their website and are available for two days.

 

Some common credit reporting companies:

Credit information via Goodnote Credit

Goodnote Credit is the credit reporting company that we at RiseUs Finance use. Goodnote Credit has information on all Swedes who are over fifteen years old. A request is registered to you for twelve months before it is removed.

 

 

Credit information in Clearhand Credit

If you are one of the two million Swedes who use the digital mailbox to receive your government mail, you may have at some time received a notification that a credit report has been made. By logging into Clearhand Credit you can immediately see which company it is. If you do not log in, nothing will happen – the information will be sent home by mail to your registered book address as well.

A common misunderstanding is that it is Clearhand Credit who does the credit information, but that is not true. Clearhand Credit is only a mailbox where the information from the credit information companies ends up.

 

Quick loans without credit information – is it okay?

SecureMoney Credit is, like all other operators that lend money, obliged to make a weighted credit assessment of the applicant’s finances before a loan is granted. It is possible to take out a loan without Unsecured credit, however, a credit report is always made on the applicant but then through another company, as in our case Goodnote Credit.

Marriage loan: what is that?

Marriage loan: what is that?

Do you make wedding plans, but are you a little too short to finance your dream wedding? Then a wedding loan is suitable for you. In this blog we will elaborate on the many benefits that a wedding loan has to offer you.

Which costs do you have to take into account?

Which costs do you have to take into account?

Getting married costs money. There are a lot of costs involved in organizing a wedding party. Just think of the costs for the room, the caterer, a DJ or music band, flowers, a photographer, and so on. You can also count the wedding rings.

Because many people dream of a perfect wedding day and have certain wishes in mind, the available budget sometimes falls short. That is why it can be useful to use a marriage loan. So you do not borrow the full pot, but you supplement your budget with the missing financial resources.

What is a wedding loan?

What is a wedding loan?

A wedding loan is actually a personal loan . You can apply for a personal loan without having to justify a specific purpose. In other words: you choose what you spend the money on: the caterer, a rings, a honeymoon, etc.

After granting the loan, the bank will transfer the money to your account in its entirety . You don’t even have to present proof of payment to justify those purchases. The only obligation you have is to pay off the loan with monthly repayments.

What are the benefits of a wedding loan?

What are the benefits of a wedding loan?

1. Fixed duration

A wedding loan or personal loan always has a fixed term. That means that you and the bank decide in advance how many years you want to pay off the loan. Keep in mind that most personal loans have a maximum duration of 10 years .

2. Fixed repayment amount

When taking out the personal loan, you also know exactly what amount you will have to pay off each month, because the monthly amount is fixed. You will therefore not be faced with unexpected costs or surprises.

3. Fixed interest rate

A mortgage loan may have a variable interest rate, which may fall or rise during the term of your loan. This is not the case with a personal loan. You will receive a fixed interest rate. You pay the same interest every month .

Are you looking for a wedding loan? 

Are you looking for a wedding loan? 

Are you interested in a wedding loan to help finance your wedding day? Most financial institutions and banks, which gives us a perfect overview of the usual interest rates and personal loans.

Feel free to drop in. In a confidential conversation from person to person we together look at your financial situation, your needs and the possibilities that present themselves.

Request a bridging loan: sell your house without pressure

Request a bridging loan: sell your house without pressure

Applying for a bridging loan is the best solution if you want to build or sell a new home, but your current home is not yet sold. This way you can borrow the amount of the value of your current home, so you don’t have to wait until the sale.

What is a bridging loan?

What is a bridging loan?

In the introduction to this blog we already gave away the essence of a bridging loan: with a bridging loan, the bank advances the amount that you will receive when selling your house, giving you the necessary finances to buy a new home.

In short: with a bridging loan you compensate for the cash deficit between the sale of your current home and the purchase of your new home.

Applying for a bridging loan: how does it work?

Applying for a bridging loan: how does it work?

Imagine the following situation:

Value of current home: USD 250,000

  • Current mortgage loan: USD 200,000

  • Mortgage loan amount already paid: USD 150,000

  • Remaining amount of mortgage loan: USD 50,000

  • Value of new home: USD 300,000

If you currently sell your current home, you still have USD 200,000 after deducting the remaining amount from your home loan. The new home that you have in mind is worth USD 300,000. That means that you need a bridging loan of USD 200,000 and have to take out a new mortgage of USD 100,000.

The USD 200,000 of the bridging loan is immediately transferred to your account and you pay it back as soon as your current home is sold. The only thing you pay off in the period between the purchase of your new home and the sale of your current one is the interest on the bridge loan.

You can even choose to deposit the total amount of that interest together with the income from your current home after the bridge loan has ended.

What should you do if you do not get your property sold on time?

What should you do if you do not get your property sold on time?

Are you unable to sell your property before the end of the bridging loan? Then you can always negotiate with your bank about an extension of the bridging loan. Unfortunately, this is always accompanied by a higher interest rate.

What if the sale of the property does not deliver the expected amount?

What if the sale of the property does not deliver the expected amount?

No worries. You can always convert the amount that you are short of into a mortgage loan . Or you can include the amount in your current mortgage loan through a refinancing.

How much can you borrow and at what interest rate?

How much can you borrow and at what interest rate?

There is actually only one rule about the amount: you can never borrow more than the estimated value of your current home. Regarding the interest rate, you should usually take into account around 2 to 4%. The average duration is 12 to 36 months.

Get the most cost-effective bridging credit

Get the most cost-effective bridging credit

We are the ideal partner for your bridging loan, because we work together with the most current banks. This means that we have an overview of the cheapest interest rates on the market.

Let’s sit together for a person-to-person conversation. Our employees are happy to talk about your current financial situation, your expectations and the opportunities that present themselves.